Fed wary of economic clouds, but leaves rates unchanged

The Federal Reserve is holding its benchmark interest rate steady, although policymakers indicate a willingness to loosen the monetary reins if U.S. economic growth sags.

While the economy remains strong, “Uncertainties about this outlook have increased,” the Fed’s rate-setting body said in a statement released Wednesday afternoon after two days of deliberations. “In light of these uncertainties and muted inflation pressures, the Committee will closely monitor the implications of incoming information for the economic outlook and will act as appropriate to sustain the expansion.”

When the Fed adjusts its key short-term rate, it influences borrowing costs for everything from mortgages and credit cards to home equity lines of credit. Lowering that rate can help stimulate the economy as well as increase inflation, which remains shy of the Fed’s target of 2% a year.

Federal Reserve Chairman Jerome Powell: The 60 Minutes interview

Federal Reserve Chairman Jerome Powell is scheduled to address reporters at 2:30 p.m. Eastern time. Earlier this month, Powell said the Fed is open to lowering interest rates to counter any damage from the U.S.’ trade war with China.

President Donald Trump has been clamoring for the Fed to lower interest rates, and has reportedly considered firing or demoting Powell.

This is a developing story…